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Staring a business can be one of the most rewarding challenges that you will encounter in your professional life. Knowing what new businesses are required to have will make completing all of your business license and permit applications easier. The IRS doesn't require all new businesses to have a Federal Tax Identification Number, which is also referred to as an Employer Identification Number (EIN). Choosing to open and operate your business without one is possible.

1

Verify that your new business is not required to have a Federal Tax Identification Number on the Internal Revenue Service's "Do You Need an EIN?" web page.

2

Establish your business name as a "Doing Business As" (DBA) with your state by contacting your Department of the Secretary of State for the instructions, requirements and applications at the local and state level.

3

Complete all of your banking and license and permit applications with your personal identification number (Social Security number) and DBA name rather than an EIN. On applications that call for an EIN, write "Not Required" on that line.

Tips

If you obtain an EIN in the future, be sure to update all of your documents to include it.

References

Resources

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About the Author

Based in Covington, Tenn., Cheryl Torrie has been writing how-to articles since 2008. Her articles appear on eHow. Torrie received a certificate in travel and tourism from South Eastern Academy and is enrolled in a computer information systems program at Tennessee Technology Center at Covington.